Domino’s Pizza – Illinois Ave
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2419 W Illinois Avenue Dallas, TX 75233
Description
DuWest Investment Services has been exclusively retained to present the opportunity toacquire Domino’s Pizza – Illinois Avenue (“The Property”), a 3,028 SF single tenant net lease retail property located in southwest Dallas. The Property is located at the intersection of W Illinois Avenue and S Hampton Road seeing approximately 55,000 combined vehicles per day.
In February 2018, Domino’s became the largest pizza seller worldwide in terms of sales. The current Domino’s franchisee has leased the space since 2018, but Domino’s has operated in this location since 1985. The current Domino’s operator and guarantor has been a franchisee for approximately 33 years and currently owns 87 Domino’s locations across three states. This particular location on Hampton and Illinois has a strong history of sales growth and an excellent occupancy cost.
For the years from 2018 to 2020, Domino’s Pizza reported same-store sales growth of 6.6%, 3.2%, and 11.5%, respectively. Moreover, the company reported its same-store sales climbed 3.5% in its latest quarter, despite tough comparisons to its skyrocketing sales during lockdowns last year. Domino’s has 7 years remaining term, with embedded rental increases throughout the hold period creating 7% growth in NOI. Their current market rent is approximately 30% lower than average rates in the market and the tenant has no renewal options remaining.
The acquisition of Domino’s Pizza – Illinois Avenue offers investors a strong, incremental income stream with the ability to push the rent aggressively in the next renewal. With a proven sales history and an emerging submarket, the Property offers a steady cash flow with a single, net lease tenant.
Square Feet
3,028 SF
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Domino’s Pizza – Illinois Ave
2419 W Illinois Avenue Dallas, TX 75233